tv Bloomberg Markets Americas Bloomberg August 9, 2017 10:00am-11:00am EDT
vonnie: hear our the stories we are covering from the bloomberg and around the world the next two hours. u.s. stocks are lower today as investors pay attention to simmering tensions over north korea. why as the market suddenly paying attention to the latest exchange of tough talk? then, as oil prices are in focus, we look at inventories. they are due in just 30 minutes. oil is rising ahead of the release. opec says iraq, the uae, and cats extent are reaffirming their commitments to production cuts. corporatee news -- in is, disney starts what could be a massive shift. what does the will do to bypass netflix and sell content directly to consumers. we are 30 minutes into the u.s. trading day julie hyman.
i julie hyman is here. julie: there is the tough talk on north korea as you mentioned. we saw stocks take a little bit of a leg lower yesterday when president trump's comments first came out yesterday about fire and fury with regard to north korea. we have not seen stocks move very much in the past on political talk, but this takes it to the next level when there is a specter of nuclear confrontation. stocks are down, but not by that much.down for the dow. a quarter of a percent or the s&p. the reactions relatively muted. take a look at the bloomberg here. we were looking at the average percentage move in the s&p 500. this goes all the way back to the 30's. you look at august average daily change, it is only about 2/10 of 1%, about 1/5 of a percent,
which would be the smallest change going back to august 1965. when we talk about the low volatility and small moves, this is despite some of the political rhetoric. we will see if that changes if indeed we see the rhetoric heating up. by the way, the s&p 500 dropped yesterday in response to the president's comments initially and was the biggest one-day drop in a month, which again illustrates how small the moves have been of late. we are looking at the so-called havens here today and other assets. crude oil is climbing going into that inventory report. we have gold higher by nine cents of 1%. 1%./10 of we are seeing buying of treasuries sending yields down by 4 basis points. now let's get to disney because we have to talk about that as well. the company is going directly to consumers to sell some of its premier content.
it is going to be pulling its content from netflix by 2019. this after a third quarter in which sales and profits saw sales missing estimates and earnings at disney's tv networks down 22%, including a negative effect from espn. disney shares down 5%. netflix down by 2%. a quick mention of charter communications. that company looks to be the target of yet another potential buyer, the french telecommunications company. this according to cnbc. charter climbing this morning. altice shares down. there has been a lot of talk about chartering the potential target perhaps from softbank or sprint. now this is the latest potential suitor to be talked about. mark: trump's fire and fury comments weighing on risk assets here. utilities the only sector rising today. every other is falling today. bonds are rising.
gold is rising. swiss franc is rising. 10 years since the event that marked the start of the credit crunch. 10 years ago today. the funds that were exposed to u.s. subprime mortgages were frozen. the purple line down 10% since then. underperforming the ftse and s&p. interestingly, france is by no means the worst performer in those 10 years. euro stocks down 18%. spain down 20%. italy down by 45%. good to mark the decade since the onset of the credit crisis. , a food liney
reporting second-quarter earnings that beat estimates. sales improving. with inflation returning to the u.s., raising their synergy ofget to 750 million euros which the additional savings will be used for reinvestment and brent competition with alexa ball mark and expanding .iscounters increase, efficient fears today. private banking assets in asia and in expanding dutch economy helping abn amro today more than double profit today, beating estimates. this was once the global banking giant. a much slimmer version of its former self exists today after the financial crisis, refocusing on its home market the export oriented economy expands. shares are unchanged, which is a bad given today's market, which
tends to be looking in the red. vonnie: you are talking about risk on, risk off. that was president
trump on twitter today saying "my first order as president will be to renovate and modernize our nuclear arsenal. it is now far stronger and more powerful than ever before. hopefully we will never have to use this power, but there will never be a time that we are not the most powerful nation in the world!." -- world!" meanwhile, rex tillerson trying to play down a strike on north korea. this a day after president trump said he can unleash fire and fury on the regime. developments.ing we are seeing a market reaction to the extent of long u.s. treasury's are showing a reaction -- treasuries are showing a reaction. when it comes to sovereignties, china asking everyone to cool their heels. germany saying a military
solution is not the correct solution. is there still a diplomatic option here? >> i think most allies of the u.s. and most people in the u.s. government are still going to be seeking some sort of a good mac solution. that is a bit of what you heard from secretary of state rex tillerson earlier today when he said he did in some way back up the president's comments, but he also says he does not see any imminent change in the last 24 hours from the heated rhetoric we have had from both sides on this. bill,one congressman, said that trump's comments undermine america's credibility by drawing in a firm redline. is there an element of truth to that? bill: he certainly stake than aggressive position. i think you'll remember president trump was google president obama's decision to come out with a redline in syria so a lot of people when they heard president trumps'comments
trump's, yesterday, there was reflation on the last as athe u.s. statked reflection. rex tillerson said the president spoke bluntly the way he did because in the past, kim jong has not shown that he understands the niceties of diplomatic language. whether that is true or not can be debated, but i think president trump had a very blunt style. it is something historically have not seen from a u.s. president when dealing with north korea. vonnie: we certainly moved some more resources to guam in a short while. what can we know about kim john kuhn and whether he is really ready to take on a foreign power? bill: the threats against guam are not entirely new. north korea has made those kinds of threats in the past at one point because that was about as far as their missiles could actually strike. now, we do believe they have icbm capable missiles that can go much further, but guam is
essentially one of the closest u.s. targets for north korea. there is still a lot of technological questions about north korea's weapons program. yes they have shown a missile can go quite a long ways. they apparently may have a miniaturized nuclear weapon that missiles.to those it is still not clear they have a missile that can reenter the atmosphere and survive that process or that they have a command and control system that can actually hit a target far away. our national security team leader in washington, d.c. thanks to you. president trump's fire and fury remarks ruffled global markets and caused a spike in u.s. equity volatility. still at a low level, nonetheless a spike. here to help us navigate the market is paul christopher, they had global market strategist at wells fargo in farm investment institute. many commentators have been suggesting it will only take one
catalytic event if you like in order to throw this market into correction mode. could this be it? >> yes, it could be. there are a lot of things that could become including domestic economy and policy. including domestic economy and policy. an answer to north korea would be very difficult, and given that you have already had the dramatic success this weekend, unanimous security council resolution, investors are far more interested right now and seeing how much further the diplomatic side of it could be pushed, and that is perhaps why we are seeing muted reactions in the markets the last two days. vonnie: washington on recess for the most part for the next couple of weeks. investors and traders, the ones that are around, are looking for something to trade on. the 30 year at 280. thalso, the end. wher-- yen.
worship short-term investors avoid -- where should short-term investors avoid? paul: the rhetoric has been to go defensive. we do not think it is time to go defensive, not for long-term investors. we still prefer the cyclical sectors, but if an investor finds positions are overweight in the portfolio, it might be time to from a little bit, take some profits, and look for opportunities elsewhere. we think it is a good time to be looking into or continue legging into europe and the emerging markets. mark: given that it is 10 years since the onset of the credit crisis given we have had a decade since then of unprecedented stimulus, at what reflect should risks the changing environment, this environment in which it seems central banks do want to normalize policy? paul: the risk to markets from policy at this point is probably
more that the policy remains too stimulative for too long. if we begin to see that policy -- let's say that were to retract some of the rhetoric and continue with policy with a foot on the gas here, the accelerator, what you could see is excessive debt being taken up and has the economy eventually slows, then suddenly spreads wide and dramatically. that is probably more of a risk than if the fed were to gradually lifted split off the accelerator and move a little more to the brake. that is a greater risk to the economy. mark: what is driving the u.s. right now is earnings. you have some great stats. interestingly, or .9% if you include energy -- interestingly, 4.9%. 10% if you include energy. it is not as strong as it looks. paul: that is right.
some of it is year-over-year comparisons that can vary. we think the important thing for investors is to recognize earnings will continue to grow we believe well into 2018 through 2019. it is still a good time to be cyclically oriented and markets on perhaps days like this when the political rhetoric becomes a little more prominent. is a good time to look for bargains for opportunities to take some profits where one is overweight, and we like those cyclical sectors going forward through 2018. vonnie: what about your allegation to fixed-income if you are a regular investor? obviously, you have some allocation, but we have some top names these days warning that fixed income is showing signs of extreme valuations. paul: we think the best place to be in fixed-income, keep that diversified fixed-income allocation, but not to go too much into the long end of the curve. we like the middle section, the intermediate maturity seven to
10 years. that is a place where we think you will have less volatility if interest rates should suddenly start to rise. vonnie: there is a thought out there that the fed will start to raise to temperance balance sheets not just because of the health of the u.s. economy, but because of potential bubbles and certain asset prices.what concerns you most about these markets ? paul: the markets right now have not really had a pullback in it while. we are waiting for that to happen. there has to be some sort of a catalyst. there has to be some sort of a reason for the markets to want to pull back. we are not telling investors to simply hold on to their money and wait for the pullback. we think investors should begin to if they are not already looking ahead. plan through 2018. vonnie: i essentially mean, which asset classes concern you most? paul: probably the high yield noninvestment grade, both on the corporate side. we think the spreads there are
two types -- too tight right now. the reward available is probably not as great as the risk of staying in those two asset classes. we also are very cautious on small caps, which we think will probably underperform further as we go later into this cycle. vonnie: great to know. paul christopher, thank you. let's check in on the bloomberg first word news. emma is here. emma: in france, police shot and arrested a suspect in a car attack on a paris suburb. six soldiers were injured when a car rammed into them.the area where the attacks took place is france's main intelligence agency. the trump campaign has begun turning over thousands of documents to a senate committee investigating russian meddling in the election. donald trump, junior, paul manafort have also provided documents. the senate judiciary committee
may call for a public hearing next month. taking a stand against the new constitutional assembly in venezuela. 12 countries have called on president nicholas maduro to close the is simply and say they will not recognize any decision it takes. the euro says the us and we will strictly gleam unity from congress and establish a commission. three nations have reaffirmed their commitment to that agreement to cut oil production. the three are iraq, the uae, and has extent. so far, all have come up short when it comes to reducing output. 24 countries agreed last year to cut back to try to end the global rut. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am emmaandra -- chandra. this is "bloomberg markets." mark: the energy market getting squeezed.how our markets responding are please responding?
mark: live from london, i am mark barton. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." oil and gold both headed higher today as investors turned away from equities. joining us to discuss the move is our guest from chicago. mark headed to3 that $1500 on this maybe new war of words. why is the market taking this particular dialogue more seriously than previous threats? >> because we have a president that did something that has not happened since president truman. he came out and used history. he had a script, if you watched
his eyes, and he made a very clear threat against mr. kim jong on. that threat is very clear. the u.s. will only take so much. a threat of words is very different than a threat of real war, and the war option is probably one it would take them attacking us before we did anything. however, it is enough to set the market up and going. i think the president did it in part to the world to really rally around what is going on and to stop north korea. that pressure will come not on the u.s. it will probably come more on china from everyone they do business with, which is most of the world at this point.that is where i think the pressure is really about, but the market takes it serious. all the safe havens, swiss franc, the japanese yen, gold, bonds notes. a correction.it is august. why not? makes sense to me. vonnie: doesn't it impact the demand for oil and the price of
oil, particularly as we await oil? ira: we are waiting to see impart what opec said. you just reported a few minutes ago that opec says they have spoken to the uae, iraq, and they are trying to get them to come in line. the simple fact is they have not been in line. you have had iraq complying at about 29% of the cut they said they would do. the uae about 60%. that is not compliance. the real problem is i do not see supplies being materially impacted by opec. the higher prices go, other countries come online. the southeast competitor brexit -- the saudi's can cut their production to asia. frome: thank you so much the chicago cme group. mark: still ahead, you might be
mark: this is "bloomberg markets ." i mark barton with vonnie quinn in london. vonnie: this week, we hear what former presidents bill clinton and george w. bush had to say about their biggest accomplishments while they were occupying the white house. >> what would you say in your 8 years you were most proud of having done? >> i was most proud that when i left office, we had the broadest period of shared prosperity in 50 years. the bottom 20% income in percentage terms, and nobody was mad at anybody.
it was shared across racial and religious and regional lines. did abolished inequality? no. you cannot in a market society, but at least we found a way to have more shared prosperity, including three budget surpluses. >> what would you say in your 8 years? president bush: my daughter loves love me. [laughter] president with: it is a itllenge -- president bush: is a challenge to have daughters when you are president. our family unit strengthened. i think that is a great a accomplishment. vonnie: former presidents bill clinton and george w. bush. you can catch the whole interview between the three tonight at 9 p.m. eastern right here -- 9:00 p.m. eastern right
here. mark: disney planning a future without netflix. it is aimed at embracing cord cutting by reaching its customers directly. we will have the full details, next. plus, we are awaiting oil inventory data in just a second. crude oil looking like this. it is up for the first time in three days. the avi data showing crude marginally boosting its estimates for american production in 2017 and 2018. we are awaiting that inventory data in 4 minutes. 1%.e oil up by 4/10 of this is bloomberg. ♪ we check our phones 85 times a day.
bloomberg's world headquarters in london and new york, i'm mark barton. vonnie: a survey calling for a drawdown of 2.2 3 million barrels. numbers are in focus after the opec meeting this week with iraq, the uae, and cap azakhstan confirming. julie: crude inventories down more than triple in fact what was estimated by analyst. inventories climbing by 3.4 million barrels. inventories dropping more than an estimated 1.7 million barrels. it looks like it is a mixed report. you have the overall drawdown. that climb in gasoline could limit gains we might see in reaction to this report. but again, distillate inventories down.overall , seeing a bit of a mixed picture here. looks like we'll is holding steady with its gain for now, but we will see what happened
when we digest the numbers and the weekly demand numbers. mark: let's focus on disney because the chief executive sees a future without netflix, and maybe one day the network cable provider themselves. it will send content directly to consumers stunning that year. the new strategy comes as weakness in the cable division, especially espn, took a toll on third-quarter sales and profits. bob iger told bloomberg what the new service would look like. bob: well, i think you have to look at disney and espn differently. the goal on the espn front is to create the ultimate digital marketplace for live sports, a destination that sports fans can go to to access a large array, probably the largest array of live sports available. whether you call it a bazaar or
a marketplace, that is what that is. if netflix is that too scripted programming and documentaries and the like, i guess you can compare espn2 that. this is maybe the efforts of sports would be one way to look at it. this is very different because it is ap or brand play -- a pure brand play. it has a fan base that not only has a great fan base but a great present and future, universal appeal, relevant as can be even though it is almost a 100-year-old brand. very much welcomed into the home and on mobile devices for kids and families around the world. branda very specific play, and i think a great way for disney to reach consumers directly, which we have not been able to do in the past because the technology did not exist to allow that to happen. >> when a ceo like you make a major strategic decisions like
this, inevitably have to ask themselves, do i build it or buy it? did you consider buying something like a netflix? why did you decide to build rather than buy? bob: well, anyway, this is a buy as well. we are buying a technology platform that will enable us to create these businesses and go into this space much faster than we would have if we build it. i will not comment whether we looked at netflix or other acquisition opportunities we have looked at or have had. we have the financial wherewithal to do a number of things, but this seemed to be the best step not only for the walt disney company but for our shareholders in terms of creating a growth strategy, really growing the company long-term, taking a long-term view, which is really important, but also addressing some of the near-term issues we are seeing, which is all about the disruption created by digital technology. vonnie: that was disney ceo and
sherman bob iger on bloomberg tv yesterday evening. for more on disney's push to reach consumers directly, let's bring in barto. thank you for joining. disney is finally addressing the elephant in the room, but not much guidance yet on the direct. disney need to do content wise to get as many consumers as possible with this push? >> that is a really interesting question.they have laid out a strategy that is pretty clear . they will do a niche sports version of espn in 2018. in 2019, they literally service focused around the disney films, animated films, pixar films, and other shows they will create around that. i am not sure that is enough. they floated the possibility of including their big "star wars" and marvel brands. this is an environment where the consumers going towards streaming on apps, competitors
are spending billions of dollars and growing netflix and amazon. i think you need to go big or go home. i think you will find that disney over time will put more and more into this, and it will be a very full-featured kind of content lineup. bamtech the ban acquisition and this bush is a positive for disney. what might be the next move? an acquisition of a content company? >barton: disney has had some great acquisitions. they bought marvel and lucas. i think they are focused on this pivot towards direct to consumer. i think the next step is to roll this out next year. roll out of the next thing in 2019 and trying to use this as a new source of growth to offset the weakness we are seeing in the traditional pay-tv
bundle. mark: this pivot, how does it end to what extent will it bolster equity value? what is the initial investment ramp-up? barton: ok. another great question. we don't do not know how much they are -- we do not know how much they are going to spend on this. the espn launch next year will include sports rights they are already paid for, so not a ton of costs. a little bit. when they get into 2019 with the movies they are yanking from netflix and putting on this service, that is $200 million to $400 million of revenue they are forgoing from netflix. plus, they will have to build other content around that, tv shows they have sold to other people that will be on the service, and it will be meaningful investment there. i do not know it stops there. this will be a bit of an eps drag on disney as they ramp it up. in terms of the equity, i think that you got this over-the-top
push drawing viewers. that raises concerns around the bread-and-butter for disney, which is viewership of traditional tv channels. there is a risk of cannibalization that hampers the stock if they build this thing up. near-term, our view on disney as a marker performer, this is difficult to get into the middle of right now. mark: let's talk about it from netflix's perspective. how long before disney pulls marvel and star wars? secondly, arsecondly, are others going to follow suit? is this the trickle and the waterfall is down the line? hastings at netflix is a brilliant individual. he saw this coming, and that is why he pivoted a long time ago to spending more on his own proprietary original content.
just a couple days ago, he bought a third tier comic book franchise presumably to mitigate some of the risk with the disney relationship and build interesting content alongside it. frank miller is what he but. the issue for netflix is not to find good content on the service. you really should visit will be more online streaming services that have their feature set and have much better content than netflix has had to stand up against before.having disney brands behind, you will see the other big networks move. i wonder about fox. cbs is already there. you see a range of options. better competition from the traditional tv dinosaurs. i think it will be tougher for netflix to drive price tags. tougher for them to get that incremental stock, particularly in the u.s.. thi in little cautionary for the equity at that price. vonnie: how does netflix transition to the next thing?
they were the great transition every business model to this model. now that everyone is embracing this kind of model, what do they do next? barton: i think netflix has a huge head start, right? their we'd in the international markets is massive -- lead in the international markets is massive.in the u.s. , they are near saturation. the competition is tougher. i think that will be the real struggle. the question is, does the market extrapolate more competition in the u.s. into headwind internationally? netflix is a one trick pony and they are writing this trick very far --riding this trick very far, but i do not see another one in the future. vonnie: a price target of 172. barton joining us from
arlington, virginia.let's check in now with the first word news . emma: the fbi has carried out a predawn raid of the former trump campaign manager paul manafort. he is cooperating with the agency. "the washington post" stays documents and other things are about russian meddling.in the u.s. elections rex tillerson said he does not believe there are imminent threats from north korea. he also told reporters he thinks president trump's warning that north korea would face fire and fury was appropriate. north korea said it is considering a missile attack on the u.s. base on guam. meanwhile, president trump is highlighting the u.s.'s nuclear capabilities. -- he sayspushed to there will never be a time the u.s. is not the most powerful nation in the world. in south africa, the president will remain in power at least until the and of the year.
zuma survived a no-confidence vote in the assembly. the ruling can backfire on the african national congress party. the opposition may argue that theanc had a chanc -- the opposition may argue that the anc had a chance to remove zuma but did not. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. mark: thank you.coming up , crude prices gyrating after that weekly oil inventory data. this comes after oil producers reinforce their commitment to cut out at the opec meeting. oil marginally low. also, we will hear from charif you in exclusive interview. . this ithat is next. this is bloomberg. ♪
mark: live from london, i'm mark barton. vonnie: live from new york, i'm vonnie quinn. this is "bloomberg markets." syriza priceline and trip advisor are on -- shares of priceline and trip advisor are on a voyage downward julie hyman is here with the story. . y. why? what is going on? julie: someone who covers the companies were bloomberg intelligence said trip advisor is still mostly a reviewed company whereas priceline is more bookings. trip advisor has tried to get into bookings. it is a much smaller company. priceline is spending more money. take a look at the bloomberg here this is a look at the companies. year-over-year -- this is a look at the companies's
year-over-year revenue. vonnie: william shatner. julie: i do not know if he is the pitch man anymore, but whatever they are doing, performance advertising is meant to lead users to click. to purchase on their website a lot of it is online advertising. it is the current quarter where profits could miss estimates.it has competition, of course. it has the likes of expedia, which is its main competitor. whichis google, airbnb, is a nexus central threat to the whole travel industry. all of these things have been waiting on the company's numbers. some of the analysts say it's forecast is too conservative. nonetheless, shares are certainly paying the price in today's session. i also want to take a quick look at how these stocks have done. priceline, $95 billion company. vonnie: yeah.
these companies have grown so humongously. julie: trip advisor is much smaller. the s&p 500 is in yellow on the top chart.priceline has outperformed it even with today's drop. the four price-to-earnings ratio is on the bottom. trip advisor is the priciest. its stock has continued to go down. priceline still trades at a premium as well, which is something to keep in mind when you look at an outlook like this and the decline of the stocks today. vonnie: thank you for that. mark: great stuff. supply concerns hitting not just oil producers, but also natural gas exporters. to for projects in the face of a global natural gas glut. one pioneer is doubling down on his outlook. alix steel joins us with more. alix: thank you so much. i am joined by charif. if you do not know who
he is, you do not know anything about natural gas. the company buys natural gas, liquefies it, and exports it all over the world.they are in the process of building those facilities now . charif is joining me in the studio.always a pleasure to see you . charif: thank you. good to see you. alix: let's go macro first before we go micro. is their demand for all of the nlg? lowif: gas prices have been on a global basis. demand is now increasing by 11% year to date for the last 12 months. on that basis given the consumption of natural gas last three years from today, if 11% growth continues, we will be operating at 90% of 2020,erating capacity by
which is not sustainable. in other words, either prices have to increase to drive demand down or demand continues to grow at 11% per year and we have a real problem in 2020, not 2024 or 2025. alix: you see that glut in 2020 the racing. more see a 2024 or 2025 issue. charif: low price createscharif: more demand. as an example, increase in energy production in china last month was 55%. when you have low prices, people go to the low price solution for all the needs they have. they have issues of environmental concerns and pollution, which pushes them to change the energy mix away from coa and intol natural gas today.they made an announcement in china, for instance, not too
long ago that they want to take the natural gas proportion from 6% to 15%. that is impossible. are not motivated by low prices.in europe also , natural gas consumption is up for the first time in years by 7%. at the same time, domestic production is down by a factor of 3%. everywhere, you are seeing price have an impact on supply and demand. alix: nevertheless, the story from exporting natural gas before was long-term contracts. lock it in for 20 years and call it a day. that was important to companies like you because you need that money and commitment in order to start building. do you still see these twenty-year commitments, or is it more 3, 5, 7, 10 years now? charif: when we came up with these contracts 10 years ago, everybody said we were crazy because nobody would buy gas. alix: they say that a lot about you, right? not just that one. charif: it must be true.
[laughter] charif: we decided to go with a business model that was appropriate 10 years ago. this is no longer the case. what has happened in the last few years that has become very evident, two. very important things. the u.s. is the low cost producer of gas and liquefaction facilities. the market is becoming large enough today that is very have it on aou global basis, see you can very whetherheck your prices asia is higher than southern europe or southern euro is higher than northern europe or the middle east or china are coming up and make a decision that is very short-term. alix: that short-term is a couple years, but you need a commitment in order to buy and make the final investment decisions. how do you square those two? charif: we invented that 8 years ago. that is no longer the case.
you do not talk about a long-term contract in the crude market. wti. have rent and so what price of natural gas the you need to start putting more money to work? charif: if you see a differential between global prices, which today are running on the gulf coast, to somewhere north of five dollars, thenficantly differenct, you know whether you have a hold on the capacity or not. today, the signal is getting to where the orange line now where you need to be careful.maybe something is going to happen ecause global crisis are at $5.20, $5.30.
borderline. they are not selling you clearly that you need something, but if i am right and the surplus gets years,d over the next 40 year you will have a very strong signal to build more liquefaction in the u.s. alix: when you make a decision to start construction on your facilities, how quickly can you get that nlg out? charif: 4 years. if we make a decision as we expect next year sometime it four years us, fo to build the facilities. most of the facilities around the world will be finished by 2020. you will have a very nervous 4 year period. there are signals when he natural gas on a daily basis with no facilities to provide them. alix: i want to end on internal drama.
the company you found it is in a lawsuit with parallax, a producer of natural gas. margin houston was the head of parallax. yesterday, shaneer named tellurian in a lawsuit. is there a fine? charif: you are very flattering. [laughter] charif: we are now significant haneer to payouls attention to us. it was a surprise. i am disappointed because i have friends there.i wish them the best in the world . i wish they would just focus on their business and not worry about hours.they are accusing us of having done something before we ever existed so i am not sure how that works, but if you remember, you interviewed me three or four days after i got fired from cheniere.
you asked me what i was going to do, and what did i tell you? months.o ski for three clearly, they disagreed with my philosophy with parallax when i was there. they did what they had to do with it. alix: right. charif: and discontinued the relationship. alix: yes. charif: to lori and was not even evenllurian was not formed. elix: we reached out to chenier for comment, but they could not comment on pending action. vonnie: "bloomberg markets," next. ♪ is this a phone?
so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. mark: it is 11:00 a.m. in new york and 11:00 p.m. in hong kong. from london, i'm mark barton. vonnie: from new york come i'm vonnie quinn. this is the european close on
"bloomberg markets." mark: here are the top stories we are covering from the bloomberg and around the world. rex tillerson is trying to calm the waters after president trump and the north korean leader exchange fiery words over nuclear strikes. the s&p 500 and the stoxx 600 taking a dive on the news today. money pouring into save havens like gold and the yen. we will take a look at how to position your portfolio as geopolitical tensions simmer. how chief executive bob iger plans to divide from netflix until content directly to consumers. have a look at european eq